Indian Ethos in Management

Indian Ethos in Management [As per the Revised Syllabus 2016-17 of Mumbai University for T.Y.BMS., Semester VI] Tushar Agarwal SET, Ph.D. Scholar, MBA (Marketing), MBA (Corporate Governance), M.Com. (Management), BMS Coordinator, Chandrabhan Sharma College of Arts, Science & Commerce, Powai. Nidhi Chandorkar NET, MBA (HRM), Pursuing Ph.D., HOD Department of Management Studies, S.M. Shetty College, Powai. ISO 9001:2008 CERTIFIED

Authors No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of the publisher. First Edition : 2017 Published by Branch Offices : New Delhi Nagpur Bengaluru Hyderabad Chennai Pune Lucknow Ahmedabad Ernakulam : Mrs. Meena Pandey for Himalaya Publishing House Pvt. Ltd., Ramdoot, Dr. Bhalerao Marg, Girgaon, Mumbai - 400 004. Phone: 022-23860170, 23863863; Fax: 022-23877178 E-mail: himpub@vsnl.com; Website: www.himpub.com : Pooja Apartments, 4-B, Murari Lal Street, Ansari Road, Darya Ganj, New Delhi - 110 002. Phone: 011-23270392, 23278631; Fax: 011-23256286 : Kundanlal Chandak Industrial Estate, Ghat Road, Nagpur - 440 018. Phone: 0712-2738731, 3296733; Telefax: 0712-2721216 : Plot No. 91-33, 2nd Main Road Seshadripuram, Behind Nataraja Theatre, Bengaluru - 560 020. Phone: 08041138821; Mobile: 09379847017, 09379847005 : No. 3-4-184, Lingampally, Besides Raghavendra Swamy Matham, Kachiguda, Hyderabad - 500 027. Phone: 040-27560041, 27550139 : New No. 48/2, Old No. 28/2, Ground Floor, Sarangapani Street, T. Nagar, Chennai - 600 012. Mobile: 09380460419 : First Floor, Laksha Apartment, No. 527, Mehunpura, Shaniwar Peth (Near Prabhat Theatre), Pune - 411 030. Phone: 020-24496323, 24496333; Mobile: 09370579333 : House No. 731, Shekhupura Colony, Near B.D. Convent School, Aliganj, Lucknow - 226 022. Phone: 0522-4012353; Mobile: 09307501549 : 114, SHAIL, 1st Floor, Opp. Madhu Sudan House, C.G. Road, Navrang Pura, Ahmedabad - 380 009. Phone: 079-26560126; Mobile: 09377088847 : 39/176 (New No. 60/251), 1st Floor, Karikkamuri Road, Ernakulam, Kochi - 682011. Phone: 0484-2378012, 2378016; Mobile: 09387122121 Bhubaneswar : 5 Station Square, Bhubaneswar - 751 001 (Odisha). Phone: 0674-2532129; Mobile: 09338746007 Kolkata DTP by Printed at : 108/4, Beliaghata Main Road, Near ID Hospital, Opp. SBI Bank, Kolkata - 700 010. Phone: 033-32449649; Mobile:07439040301 : Sneha Gaonkar : M/s Sri Sai Art Printer Hyderabad. On behalf of HPH.

PREFACE We are pleased to present this book on Indian Ethos in Management to the students of third year BMS students. The course is an attempt for the students, who are about to graduate, to learn about how to apply the management theories learnt through the three years of graduation in an Indian scenario. This course has brought the theories of West in alignment with the ancient Indian management concepts. As the structure of syllabus provided by University of Mumbai, the book has been divided into four units. The first unit has been divided into two chapters. The first chapter develops an understanding towards the Indian Ethos and its relevancy today. The second chapter goes deep into Indian ethos by describing the ancient religious scriptures, like Vedas, Mahabharat, Bible, Quran, and derives the management lessons from them which are very much applicable in today s industrial and corporate scenario. Arthashastra (by Kautilya) can be an important reference for the strategists of today s corporate. A brief incepts from this book are also discussed. After developing an understanding for Indian Ethos, the first chapter of second unit describes work ethos, its levels and dimensions. It also discusses the steps involved in bringing work ethos in work. The second chapter in this unit discusses the importance of values in management practices, its impact on the stakeholders and the organisation. The third unit discusses in detail about stress, its types and western and Indian methods of managing it. Meditation has been a universal practice, but various communities, religion and geographical regions have their own unique technique of practicing it. These techniques along with their benefits are discussed. Leadership is explained with the help of theories. Indian businesses running within the family have a great influence of their leader karta. Meaning and qualities of karta are taken in detail to understand Indian leadership style. Indian and western theories are explained as well as compared in the remaining part of the unit.

The fourth unit deals with multiple interrelated concepts applicable even in contemporary management style. Learning is the constant process. How does learning take place? How have been the processes of learning and education in ancient India and modern India? Benefits of both the education systems have been discussed along with their limitations. Law of Karma, an method to explain why things happen, have discussed in detail. Selfmanagement and personality development practices of India are compared with that of western. This book is an attempt to visualize the modern Indian management approach from the perspective of Indian Ethos. We are thankful to our publishers, colleagues and friends for their contribution in completion of this book. Authors

Sr. No. SYLLABUS Models/Units 1. Indian Ethos An Overview (a) Indian Ethos Meaning, Features, Need, History, Relevance, Principles Practised by Indian Companies, Requisites, Elements, Role of Indian Ethos in Managerial Practices. (b) Management Lessons from Scriptures Management Lessons from Vedas, Management Lessons from Mahabharata Management Lessons from Bible, Management Lessons from Quran Management Lessons from Kautilya s Arthashastra Indian Heritage in Business Management, Production and Consumption. Ethics v/s Ethos Indian Management v/s Western Management 2. Work Ethos and Values (a) Work Ethos Meaning, Levels, Dimensions, Steps, Factors Responsible for Poor Work Ethos. (b) Values Meaning, Features, Values for Indian Managers, Relevance of Value Based Management in Global Change, Impact of Values on Stakeholders: Employees, Customers, Government, Competitors and Society. Values for Managers, Trans-cultural Human Values in Management and Management Education, Secular v/s Spiritual Values in Management, Importance of Value System in Work Culture 3. Stress Management (a) Stress Management Meaning, Types of Stress at Work, Causes of Stress, Consequences of Stress (b) Stress Management Techniques Meditation: Meaning, Techniques, Advantages, Mental Health and its Importance in Management, Brain Storming, Brain Stilling, Yoga: Meaning, Significance

(c) Leadership Meaning, Contemporary Approaches to Leadership, Joint Hindu Family Business Leadership Qualities of Karta. (d) Motivation Meaning, Indian Approach to Motivation, Techniques. 4. Indian Systems of Learning (a) Learning: Meaning, Mechanisms Gurukul System of Learning: Meaning, Features, Advantages, Disadvantages. Modern System of Learning: Meaning, Features, Advantages, Disadvantages. Karma: Meaning, Importance of Karma to Managers, Nishkama Karma. Laws of Karma: The Great Law, Law of Creation, Law of Humility, Law of Growth, Law of Responsibility, Law of Connection. Corporate Karma: Meaning, Methodology, Guidelines for Good Corporate Karma. Self-management: Personal Growth and Lessons from Ancient Indian Education System. Personality Development: Meaning, Determinants, Indian Ethos and Personality Development.

PAPER PATTERN Duration: 2.5 Hours N.B: 5 questions of 15 marks each. All questions are compulsory. 75 Marks Q.1. Attempt any two: (a) (b) (c) Q.2. Attempt any two: (a) (b) (c) Q.3. Attempt any two: (a) (b) (c) Q.4. Attempt any two: (a) (b) (c) Q.5. Case Study 15 Marks

CONTENTS Unit I 1 Indian Ethos 1 9 2 Management Lessons from Scriptures 10 21 Unit II 3 Work Ethos 22 27 4 Values 28 37 Unit III 5 Stress Management 38 82 Unit IV 6 Indian Systems of Learning 83 114

UNIT I C 1 H A P T E R Indian Ethos MEANING Ethos is a set of beliefs, ideas, etc., about social behaviour and relationship of a person or group. Indian Ethos is all about what can be termed as national ethos. Indian ethos refers to the principles of self-management and governance of society, entity or a system by wisdom as revealed and brought-forth by great scriptures like Veda, Upanishads, Gita, Mahabharata, Bible and Quran. This wisdom evolved through the old practices of Indian mystics, philosophers and religious gurus, and is now found to have profound implications for self-management and good governance of a stormy society and business environment, or even a politically divided world. According to Oxford Advanced Learner s Dictionary, Ethos are the moral ideas and attitudes that belong to a particular group or society. FEATURES 1. Divinity of Human Being: Indian ethos focuses on the existence of human being as truth. There is nothing more perfect than the supreme soul. 2. Balance or Equilibrium: Balance or equilibrium is a stable state of Indian thought, i.e., balance between desire and desirelessness, spiritual and secular values, subjective and materialistic world. 3. Balance of Personal and Work Life: Indian ethos focuses on the concept that if you are good then the world is also good for you. So,

2 Indian Ethos in Management every individual should have an effective management and balance of personal and work life in the organisation. 4. Cosmic or Pure Consciousness: The divine element, which is an inner part of an individual, is a part of cosmic or pure consciousness. It gives a base for mutual trust, cooperative, teamwork and common good. 5. Importance to Character: The Indian ethos gives much importance to character not to the knowledge. It is the character, which is the real power and wealth. 6. Whole-Man Approach: Indian ethos is based on Indian scripture like-shruties of Gita and Upanishad and Smruties of Puranas. Indian thought provides the whole-man approach through knowledge of creation, cosmos and internal relation between spiritual and materialistic life. 7. Work in Worship: Indian ethos works with the fact that all work is worthy and honourable. Work is worship is the guiding principle for all effort as advocated in the Indian ethos. 8. Duty and Responsibility: Indian ethos rarely talks of rights and prevails ages. It always emphasises only on the duties and responsibilities of human beings. 9. Knowledge: Indian ethos deals with two types of knowledge: Knowledge of creation Knowledge of creator 10. Excellence at Work: According to Indian ethos, total quality management can be assured through excellence at work, through self-motivation and self-development. NEED AND RELEVANCE OF INDIAN ETHOS Indian ethos is needed due to the following reasons: 1. Maintain Holistic Universe: Modern science has accepted that in this holistic universe, all minds and matters are interconnected at a deeper level. The basic unity of life cannot be broken. Love, sacrifice therefore emerges as the only means for a meaningful living. On the basis of this holistic vision, Indians have developed work ethos of life. This helps in living life to the fullest.

Indian Ethos 3 2. Elucidate Motivation: Concept of motivation can be explained holistically by Indian ethos. Considering motivations as internal, every human being has the same divine atman with immense potentialities within. Vedanta brings infinite expansions of the mind, breaks down all the barriers and brings out the God in man. Motivation is to be internal and not external. Such motivation involves the inner beauty and does not promote any greed in an individual to have more and more in return for his work. 3. Welfare: Indian ethos teaches welfare of all (yagna spirit). Atmano Mokharth Jagat Hitay Cha (serve your personal interest but do not forget others). This philosophy is needed in modern times. 4. Unique Work Culture: Indian ethos helps in development of unique work culture. Work is considered as duty or Sadhana and there is no difference between Karma(work) and Dharma(religion). The term Dharma does not indicate any particular religion. Dharma is a duty to be performed in a given situation. Thus, Dharma is possible through Karma only. 5. Evenness of Mind: Indian ethos helps in evenness of mind. Means are equally important as the ends. Thus, society acceptable values are to be followed in determining the objectives as well as in the process of achieving these objectives. 6. Self-development: Integrated human personality of self-developed manager can assure best and competent management of any enterprise, involving collective works and efforts. The refined or higher consciousness will adopt holistic attitude. It will bring out the divine in man. It will achieve perfection or excellence in whatsoever sector of work. One shall achieve peace, harmony and prosperity within and without, i.e., in the internal world and in the external world simultaneously. 7. Provides Concentration: Vedanta provides the ways and means of controlling the mind. It helps to concentrate, increase efficiency, productivity and prosperity. It is not religion of resignation and retirement. One cannot renounce their action. As the Gita says You have to be a man of action, do not run away from your action or Karma but the same should be according to your Dharma. The second aspect, is while doing the Karma; do not be tempted by worldly pleasures, materialism and the results. One has to be man of action, working in a

4 Indian Ethos in Management spirit of renunciation. Renunciation does not mean living a life of isolation or living in a forest. One has to face the world and should not run away from your action. Do not get attached to anything. 8. Establishes Value System: Many of the present ills are the results of decline in our value system and loss of character. Forces of fierce competition in the technology driven era of globalisation have taken a heavy toll of traditional values. People need to re-imbibe the sanatan values of honesty, integrity, compassion, care and cooperation. There is again a need to establish conduct, based on truth and non-violence, peace, and harmony. One needs to promote a secular ethos that entails sarva-dharm-sambhav. That alone will promote enshrined in our ancient maxim of Vasudhaiv Kutumbakam. That will be India s unique contribution towards enrichment of content of globalisation which today has its focus only on trade and commerce. HISTORY Formally, the body knowledge which derives its solution from the rich and huge Indian system of ethos is known as Indian Ethos in Management (IEM). Indian ethos is more vital to modern management than any other management theory for simple reason that it takes into account a whole man approach (mentioned earlier) rather than approaching man in a partial fashion. Each and every situation can be met effectively if one takes time to reflect over it. Reflection with a tranquil mind helps in drawing out solutions from within. Such guidance from within helps a manager look at the perceived problem situation in a creative manner. It leads to a more coherent and complete understanding. The silent ideas and thoughts of Indian Ethos in Management revealed by Indian s ancient scriptures are: 1. Atmano Mokshartham Jagat Hitaya Cha: All work is an opportunity for doing well to the world and thus gaining materially and spiritually in our lives. 2. Archet Dana Manabhyam: Worship people not only with material things but also by showing respect to their enterprising divinity within. 3. Atmana Vindyate Viryam: Strength and inspiration for excelling in work comes from the Divine, God within, through prayer, spiritual reading and unselfish work.

Indian Ethos 5 4. Yogah Karmashu Kaushalam, Samatvam Yoga Uchyate: He who works with calm and even mind achieves the most. 5. Yadishi Bhavana Yasya Siddhi Bhavati Tadrishi: As we think, so we succeed, so we become. Attention to means, ensure the end. 6. Parasparam Bhavatantah Shreyah Param Bhavapsyathah: By mutual cooperation, respect and fellow felling, all of us enjoy the highest good both material and spiritual. 7. Tesham Sukhm Tesham Shanti Shaswati: Infinite happiness and infinite peace come to them who see the Divine in all beings. 8. Paraspar Devo Bhava: Regard the other person as a divine being. All of us have the same consciousness though our packages and containers are different. PRINCIPLES PRACTICED BY INDIAN COMPANIES Following are the few basic principles of Indian ethos management: 1. Immense potential, energy and talents for perfection, as a human being has the spirit within his heart. 2. Holistic approach indicating unity between the Divine (the Divine means perfection in knowledge, wisdom and power), individual self and the universe. 3. Subtle, intangible subject and gross tangible objects are equally important. One must develop one s third eye, Jnana Chakshu, the eye of wisdom, visions, insight and foresight. 4. Inner resources are much more powerful than outer resources. Divine virtues are inner resources. Capital, materials and plant and machinery are outer resources. 5. Karma yoga (selfless work) offers double benefits, private benefit in the form of self-purification and public benefit. 6. Yogah karmasu kaushalam, which means excellence at work through self motivation and self development with devotion and without attachment. 7. Cooperation is a powerful instrument for team work and success in any enterprise involving collective work.

6 Indian Ethos in Management REQUISITES FOR INDIAN ETHOS 1. Management Attitude: Top management having firm belief in value-oriented holistic management. Profit is earned through service and satisfaction of all stakeholders employees, customers, shareholders and citizens. Fulfillment of social responsibility must be ensured. 2. Humanising the Organisation: Looking at the three aspects of humane organisations, i.e., inter personal relations, man-machine equation where man is the prime concern and inner management through mental and spiritual growth of individuals. 3. Interiorising Management: self management or management by consciousness. When the soul manages the other four members of the human being, namely, the body, mind, intellect and the heart, the conflict these four have amongst themselves can be resolved. This is called management by 3.consciousness. The objective of self management is to first know and manage oneself and then manage others. 4. Self-Introspection: Embark upon self-study, self analysis and selfcriticism to locate areas of friction and disharmony, a self examination of one s own feelings, thoughts, emotions, sensations and passions and a desire to reduce and subdue the ego. 5. Brain-Stilling: For rational and enduring decisions, silent mind is a necessity. A perfect Mounum(calm mind enjoying tranquillity) is necessary. Brain-stilling or meditative silence is the most reliable method to discover solutions to problems which seem to be difficult to tackle by reason and intellect, because through this, one can come into contact with the inner mind or higher consciousness, called Chetana. 6.Stepping-back (for a While): Never decide anything, never speak a word and never throw yourself into action without stepping-back. The stepping-back from a situation for a while enables one to control and master a situation. 7. Self-Dynamising Meditation: A dynamic meditation helps in transformation of lower consciousness into higher consciousness and hence is called transforming meditation. Through meditation, one reaches a higher level of consciousness with a silent and calm mind, which offers guidance in the form of intuitions to tackle a multitude of problems. This is called consciousness approach to management.

Indian Ethos 7 8. Role of Intuition: Intuition is the act of coming to direct knowledge or certainty without reasoning or inferring. It is immediate cognition by the inner mind and when fully developed, is efficient and effective for taking prompt and sound decisions. Intuition skills enable one to cope with confidence the fluctuating environment and rapid changes. Faith is a prerequisite to develop and realise the power of intuition. ELEMENTS OF INDIAN ETHOS Three elements of Indian ethos are as follows: 1. Focus on the permanent: In real life fashions change, concepts change, situations change, environments change, however, certain things do not change. These are the values of the good, truth and beautiful. The recent experience in the 90s and the early part of this century shows, that the world is re-discovering the principle of honesty is the best policy. After all, honesty is linked to truth and that is the first principle which perhaps underlines human existence. In these days, the operational word for integrity is corporate governance. Corporate governance has two elements. Transparency, which helps to fix accountability, which in turn highlights that accountability, is for the shareholders and stakeholders. Transparency and accountability are nothing but exercises in integrity and ensuring that clever financial engineering or window dressing do not mislead the investing public. If there is a crisis today, whether in the Indian capital market or the U.S. market, it is the crisis of confidence of the investors in the business enterprises. It is therefore found that one of the central elements of Indian ethos, namely, the focus on truth and integrity is also eminently relevant in the business context. 2. Quest for Perfection: It has been immortalised in the shloka: Om poornamada poornamidam poornathpurana mudachyate poornasya poornamadaya poornameva vashistate Out of perfection comes perfection. This quest for perfection ultimately, is the quest for quality. When it comes to quality, the concepts like total quality management, etc., have only once again underlined this principle of the fact that quality products and services cannot come out of an organisation unless the principle of quality pervades every function of that organisation. This all pervasive quality

8 Indian Ethos in Management is also reflected in the shloka of Vallabhacharya, who found that every aspect of Lord Krishna was beautiful: Adharam madhuram vadhanam madhuram Nayanam madhuram hasitam madhuram Hridayam madhuram gamanam madhuram Madhurathipathe akhilam madhuram All pervasive sense of sweetness and elegance is not only the reflection of quality but also of excellence. In any management today, this ultimate focus on excellence can never be lost. Thus, it is found that this aspect of Indian ethos is also not only relevant to India but globally. 3. Joy in Performing One s Function: It was Deming who said that quality is the pride, which an artisan takes in his craft. It is the pride which an artist takes in his art. If one is enjoying what one is doing, automatically, he is bound to do extremely well; and while excellence becomes a by-product or a spin of the benefit of happiness, it also leads to success. After all, every excellent organisation has excellent morale. Excellence, in terms of enjoyment through doing is the third aspect of Indian ethos. It is found that this aspect is not only restricted to India, but is universally applicable. ROLE OF INDIAN ETHOS IN MANAGERIAL PRACTICES 1. Creates strong relation: Organizations following Indian ethos consider humanity as supreme. This provides a strong bond with internal as well as external customers, resulting in an improved performance. 2. Inward considerations: Indian ethos focuses on if a person is good then the whole world is good. Any organization which follows the above ethical thought automatically get converted into an ethical organization with less conflicts and hindrances. 3. Avoids unethical aspects: As Indian ethos is a principle derived from Upanishads, Bhagwat Gita and Puranas, where the performance is always ethical 4. Balanced values: Indian ethos promotes a person to live a life of materialism and spirituality by maintaining a balance between spiritual values and secular values.

Indian Ethos 9 5. Improves performance: Indian ethos impacts the performance of business by emphasising on the concept like sacrificing individual desires in favour of social benefits, preferring long-term benefits. 6. Improves quality: Self-motivation and self-development helps a lot in development of business and its quality 7. Helps in problem solving 8. Develops self-reliability QUESTIONS (1) Explain the role of Indian ethos in managerial practices (2) What are the requisites for Indian ethos? (3) What is Indian Ethos? What are the features of Indian Ethos? (4) What is Indian Ethos? Explain the need and relevance of Indian ethos? (5) In short, explain the history of Indian Ethos?